TransCanada files project description on new eastern gas pipeline

CALGARY, Alberta May 8 (Reuters) - TransCanada Corp
on Thursday filed a project description with regulators
for a new gas mainline project in eastern Canada that will
replace capacity being converted to carry crude for the Energy
East oil pipeline.

The company plans to transfer 3,000 kilometres (1,864 miles)
of under-utilized natural gas mainline system to the 1.1 million
barrel-per-day Energy East pipeline that will ship crude from
Alberta's oil sands to Saint John, New Brunswick.

Questions have been raised over whether gas customers in
eastern Canada would see prices rise as a result of lower
supply. TransCanada Chief Executive Officer Russ Girling said
plans for the new Eastern Mainline Project, filed with Canada's
National Energy Board, were intended to alleviate those
concerns.

"We are committed to ensuring that gas transmission capacity
is available to meet the needs of customers and that the cost of
serving those customers does not increase as a result of the
transfer of a portion of the Canadian Mainline to Energy East,"
Girling said.

The proposed Eastern Mainline project will add up to 370
kilometres of 36-inch diameter pipe and compression facilities
to the company's existing Canadian Mainline natural gas
transmission system in southeastern Ontario.

It is intended to meet growing demand from customers in the
provinces of Ontario and Quebec and ensure TransCanada can
handle new supplies of gas from the U.S. Northeast.

TransCanada and shippers are still discussing how much
capacity will be required on the Eastern Mainline.
(Reporting by Nia Williams; Editing by Paul Simao)